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Three parties call for higher penalties in tax amnesty bill
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Tax officers welcome taxpayers at Tulungagung Tax Office in East Java on March 31. The government is being urged to step up publicity campaigns for the tax amnesty to avoid any public misunderstanding and noncompliance amid heated debate over the low penalties to be imposed on tax evaders who join the program. (ANTARA FOTO/Destyan Sujarwoko)
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head of the tax amnesty draft bill deliberation meeting slated for May 23, various political party factions have proposed that a higher-percentage penalty be imposed on tax evaders in exchange for redemption.
Ten factions of the House of Representatives will deliberate the problems and proposals that each faction puts forward on Monday with the Finance Minister Bambang S. Brodjonegoro.
The ruling Indonesian Democratic Party of Struggle (PDI-P) has stressed that the program must be applied just once, and must fairly respect the obedience demonstrated by most taxpayers.
"On tariffs, we propose a rise. The faction's meeting initially proposed the rates of 5, 10 and 15 percent, but they may get changed 5, 8, and 10 percent," said Hendrawan Supratikno, secretary of the PDI-P faction at the House complex, in Jakarta on Thursday.
Article 3 of the draft bill lists three options for penalizing tax evaders: 2, 4 and 6 percent.
The 2 percent penalty is for tax evaders who submit their tax amnesty-protected funds-repatriation applications within three months of the implementation of the proposed tax amnesty law. The 4 percent penalty is for those applying during the fourth, fifth and sixth months of the law's implementation, and the 6 percent penalty is for those filing applications after the sixth month of the law's implementation.
Speaking separately, Golkar lawmaker Sarmuji, who sits on the House's Commission XI overseeing banking and finance, said the tax amnesty law must be a part of a wider tax reform.
"Golkar wants a higher tariff than that proposed by the government. We want a tariff of 5 percent and 7.5 percent, for just two batches, per six months," Sarmuji said.
Sarmuji shared a similar stance to Hendrawan on the implementation, saying that the program should not be applied more than once. If applied repeatedly, the program would disrupt the tax system.
The government should revise the 1983 law on general taxation procedures (KUP) before deliberating the tax amnesty draft bill, Sarmuji added.
Important points
The Gerindra Party, which has yet to determine its stance on the tax amnesty draft bill, has considered several important points from the bill.
Kardaya Warnika, Gerindra lawmaker from the Commission XI, said the party's questions were around equality of treatment for obedient taxpayers; the coverage of this program, as the government's focus, he said, had been on taxpayers living abroad and not those living in Indonesia; and the expiry date of the amnesty.
"When we get into a discussion on tariffs, we will propose a higher percentage than that proposed by the PDI-P," Kardaya said after a press conference at Gerindra's faction room at the House complex in Jakarta on Thursday.
Gerindra faction deputy chairman Desmond Junaidi Mahesa also questioned whether the tax amnesty draft bill, targeted at helping close the revenue gap in the state budget, was part of a long-term solution.
"Perhaps this is just a momentary solution. How many taxpayers are really eligible for the remission? Also, the [potential revenue boost] has not been accurately calculated," Desmond said during the press conference. (ags)
